Singapore abolished inheritance tax on 15 February 2008, so you no longer have to pay tax on the total value of the assets someone leaves you in their will, even if you inherit a property. But you may not be totally off the hook since stamp duties may be owed on residential property inherited in Singapore. 

Stamp duties are the taxes you owe when purchasing property in Singapore. But you do not owe stamp duty when inheriting a property if: 

• It’s a residential property; and
  • Your inheritance was through a valid will
  • Your inheritance was the result of the Intestate Succession Act, or
  • Your inheritance was through the Administration of Muslim Law Act

If none of the above apply, it might be considered a sale or a gift and you would have to pay the necessary stamp duties. 

Even if no stamp duties were owed when you first took possession of the inherited property, stamp duties may still be required should the following occur:  

• You sell your inherited property: Owing stamp duty when selling the property that you inherited depends on when the deceased first acquired it. If you sell the property within the stipulated three-year holding period from when the deceased first took ownership, you may have to pay a Seller’s Stamp Duty (SSD). The amount of SSD depends on the length of the holding period and when the property was acquired. You can click here to find out what the SSD will be in your situation.
• You purchase another property: You are now the owner of the property you inherited. This means it counts when adding up the properties you own in determining the Additional Buyer’s Stamp Duty (ABSD) that you would owe when buying another property. However, if your inherited property is located overseas or has been gazetted by the government for compulsory acquisition, an ABSD would not be owed. 

ABSD is the stamp duty that people must pay when acquiring additional properties. The amount that must be paid depends on how many properties the buyer already owns. If you would like to find out what your current ABSD rates are, click here.

Would it be a Problem if I Kept the Inherited Property?

The property laws in Singapore are fairly strict, so there may be repercussions if you keep the inherited property. The laws that would apply to your property inheritance depend on the type of property involved. 

HDB Flat

If the property you inherited is an HDB flat, it may have to be sold within six months of the date you acquired the property. This would be the case if any of the following circumstances apply to you:

1. You fail to meet HDB eligibility requirements under one of its schemes: 

​To qualify for ownership, you must meet citizenship requirements and be part of a nuclear family. Single people must be 35 years of age or older. For further details on HDB’s various eligibility schemes, click here.

2. You currently own an HDB flat: 

Under current HDB rules you are only allowed to own one HDB flat at a time. 

3. You currently own a private property, and the HDB flat you inherited had been purchased by the deceased owner after 30 August 2010: 

But even if the deceased had purchased the property prior to 30 August 2010, you would still not be allowed to keep it if he/she bought the flat with subsidised funds from the government. 

Private Property

If you inherited a piece of private property, it may have to be sold if any the following circumstances apply to you. 

1. You do not hold Singapore citizenship and the property you inherited is a landed property: 

​In Singapore landed property is property in which the title includes the land. A non-citizen of Singapore must get permission from the Singapore Land Authority (SLA) to own landed property. You are more likely to get permission if you’ve been a Permanent Resident of Singapore for at least five years and you can prove that your economic contribution to the country has been substantial. 

2. You are a citizen of Singapore but already own an HDB flat in which the Minimum Occupation Period (MOP) is still not over: 

The MOP is usually five years for new HDB flats, but those purchased with the help of the Fresh Start Housing Scheme can have an MOP of 20 years. 

How Much Will I Owe in Fees on Inherited Property I End Up Keeping?

Remember that property owners are required to pay maintenance fees and property tax, so these will be your responsibility if you keep the property. 

1. Maintenance fees:

​If you inherited an HDB flat you will need to pay service and conservancy fees. If the property you inherited is a non-landed private residential property, like a condominium, you will be paying maintenance fees. Maintenance fees for condominium owners can be substantial, averaging about S$300 to S$500 a month, but these fees have been known to go up to S$1,000. Also, in some buildings the condominium management (MCST) fees are billed quarterly, resulting in a much larger bill. 

2. Property tax: 

Owners of residential and/or commercial property are required to pay property tax annually. The assessed tax is a percentage of the value of your property that year. IRAS does an annual assessment of your property’s market rental rate and that’s how the annual value is determined. Property tax is a progressive tax, so owners of high value properties pay a higher tax rate.

Also, IRAS divides properties into two categories: owner-occupied and non-owner occupied. The property tax rate for properties where the owner lives is lower than for properties where a non-owner or tenant lives. You can go to the IRAS website to find what your property tax rate is.

Inheriting a piece of property may seem like a blessing, but there could be expenses that you are unlikely to know about or be prepared to handle. The inheritance can become even more difficult if you are grieving the loss of your loved one while trying to grapple with your inheritance and the financial burdens that come with it. 

Read more on Cost of Purchasing and Owning a Property in Singapore

You might want to consult with one of Pinnacle Estate Agency’s lawyer partners for advice on the hidden costs that may come with your inherited property. 

Or, if you are thinking about leaving property to your loved ones, you may want to determine whether they want to inherit your property to begin with, and whether they are in a position to handle the costs associated with ownership. It might also be wise to determine whether they would be eligible to own the property in the first place. 

This way, if they tell you that they would rather not inherit your property, are unable to handle the costs of ownership, and/or are ineligible to own such a property, you can consider leaving your property to someone else, or to charity after your passing. 

At Pinnacle Estate Agency, we strongly believe in sharing our real estate knowledge to the public.⁠ For more content like this article, check out our Singapore Property Guides.